Report: Doublestar purchase of Kumho stake to proceed

SEOUL, South Korea — The sale of a 42 percent stake in Kumho Tire Co. Ltd. to China's Qingdao Doublestar Tyre Co. Ltd. will go ahead as planned as Kumho Asiana Group Park Chairman Sam-koo is giving up his right to buy the shares, according to South Korean press reports.

Korean media reported April 17 that Mr. Park, who had the option to match Doublestar's bid to buy back Kumho Tire shares from its creditors, complained of "unleveled sales process from creditors by denying him of the chance to form a consortium to finance the buyback."

Mr. Park said in a statement that creditors, led by the Korea Development Bank (KDB), had notified him that he would not be allowed to form a consortium to buy the shares despite Doublestar's winning of the bid through a consortium.

"I cannot go along with such unfair sales deal and therefore won't exercise by right of first refusal," he said, according to Pulse News.

The Korean banking consortium that holds the shares struck a deal on March 13 with Doublestar, valued at $830 million, that allegedly also gives Doublestar management rights.

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